What Is A Transportation Management System (TMS) ?

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Transportation management system or TMS is a logistic solution that uses technology to streamline the physical movement of goods globally. TMS also makes sure that the shipment is properly documented and  follows all the compliance protocols. TMS is a part of a larger supply chain management system mainly covering transportation related matters. Transportation management systems help the shipping companies automate most of their work and hence save a lot of time and expenditure on the future shipments. TMS provides the shippers a clear insight of their everyday transportation operation whether by land, sea or air.

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Why Do We Need A Transportation Management System ?

There are various challenges in the field of shipping goods across the globe. A shipping company has to deal with these multiple challenges on a day to day basis.

Choosing A Carrier

Every shipment is different and the goods are also required to have a separate set of handling instructions. Some of the shipments are fragile and temperature sensitive, therefore single carriers cannot handle all the shipments. Some carriers can cover long distance transportation easily while others may be best suited for the specialized deliveries. Therefore, choosing a best carrier for the shipment is a big headache for the companies.

How To Keep The Rate Of Carriers Organized

Shipping companies deal with multiple shipments everyday. They spend too much time getting the best quotes from the websites and asking the rates from the multiple carriers. Going through the websites for the rates of the carriers is a very tedious and time consuming task that hampers your ability to deal with other issues.

How To Track Your Shipments

Shipment companies always use multiple carriers for all their transportation of goods. These goods or commodities transit across the globe with the help of multiple trucks or transportation vehicles. Therefore to track the shipment accurately becomes a very difficult endeavor. You have to manually type the tracking number for each shipment into the forms on a number of carrier websites.

How To Select The Best Carrier

Without having a proper insight about the carrier performance, you have to rely on whatever little information you have about the freight carriers that which carrier is cheaper or which one delivers on time.

Without the TMS in place it is very hard to select the best carrier for your shipment. As you can see there are multiple challenges faced by the shipment companies in an ultra competitive segment of industries.

Benefits Of A Transportation Management System

With a proper TMS in place you can overcome all these challenges very efficiently. There are a lot of benefits of a transportation management system.

Reduces The Operating Cost

TMS simplifies the entire shipping process by comparing carrier’s shipment rates and providing you the best rate available. TMS users don’t have to switch websites to check the pricing but instead all their tariff information is available on one single screen. This will save some valuable time and money for the shipment companies.

Route Planning

Transportation management system helps in providing the best route for the shipment and hence gives you insights about the most affordable route available to send the shipment timely and economically.

Tracking Shipment

Tracking is the most important part for timely delivering the goods and gaining trust of your clients. Transportation management system tracks all the shipment in real time and simultaneously provides your clients the real time location of their goods. This will help your clients to plan their receiving arrangements in advance. TMS can alert you any future delays by tracking the traffic or weather conditions in advance.

Reduces Paperwork

Transportation management system cuts the need for paper billing and invoicing. Now TMS can generate the soft copy of invoices and send them directly via emails. This will drastically cut the requirement for paperwork. Therefore, it is better for the environment too.

In Depth Business Analysis

Best transportation management system provides you with an in depth analysis of your business and offers you the solutions based on your requirements. With a robust TMS, you can manage multiple locations with as many shipments everyday. You can foresee all the shipments from one single location. TMS will store all the information in one place and provide you with customized reports for better management.

Customer Satisfaction And Scalability Of Your Business

With a robust TMS in place you can improve your customer satisfaction with real time updates about their shipments and avoiding the unnecessary delays. Customer satisfaction is very important for the growth of your company.

TMS will improve the ability to scale up your business to new high by meeting and exceeding the customer demands for quicker and on time deliveries. You will be the beneficiary of repeated orders from a satisfied customer.

Types Of TMS

There are so many options in the market to buy a TMS for your shipping company. Companies can buy a robust TMS that can be easily integrated with their cloud based or on premises ERP softwares. Some of the TSMs are loaded with features and even offer trade documentation capabilities. While some TSMs are not so rich with features and offer only basic services. Therefore it only depends on you, what kind of features and capabilities you are looking for in a transportation management system.

The customer’s demands are growing with an ever changing and evolving environment. In a cut throat segment of industries, you have to change with the time and install the latest technology to stay ahead of the competition. Therefore, most of the shipping companies are investing more and more in the latest transportation management softwares.